Solar panels, 80% of which are manufactured in China, have become so affordable that they are now being utilized to adorn garden fences in Germany and the Netherlands, as per the Financial Times. Typically mounted on rooftops to maximize sunlight absorption, the surplus supply has prompted people in these nations to opt for fence installations, bypassing the expensive labor and scaffolding expenses associated with roof setups.
The trend of solar-clad fences is gaining traction in the UK, North America, and Australia. Martin Brough, the head of climate research at BNP Paribas Exane, remarked to the FT, “Why erect a fence when you can cover it with solar panels, even if they aren’t perfectly aligned with the sun?”
The International Energy Agency projected that global solar panel supply is set to reach 1,100 gigawatts by year-end, exceeding demand threefold. Spot market prices have already halved in 2023 and are anticipated to drop another 40% by 2028, according to the agency.
With an oversupply situation in the Chinese solar panel market, manufacturers in the US and Europe are finding it challenging to compete effectively. US Treasury Secretary Janet Yellen, currently on a visit to China, is focusing on the issue of excessive Chinese solar panel production during her discussions with Chinese officials.
Yellen’s visit aims to advocate for fair treatment of American workers and businesses, addressing concerns about unfair trade practices and the global economic impact of Chinese industrial overcapacity. In a recent statement at a Suniva solar cell plant in Georgia, Yellen expressed worries about the global repercussions stemming from China’s surplus capacity affecting emerging industries like solar power, electric vehicles, and lithium-ion batteries.